Pharma BD Deal Intelligence
A $145M bet on Dyloject IV pain drug that turned into a 4.5-year regulatory ordeal—a Complete Response Letter arrived three months after close, and approval didn't come until December 2014. Dyloject launched in July 2015, but Hospira was acquired by Pfizer two months later and quietly discontinued the product.
A $145M bet on a near-term pain-drug approval turned into a 4.5-year regulatory ordeal — Dyloject launched just as Hospira itself was swallowed by Pfizer, then was quietly discontinued
Full analysis, sources & comparables →Our Board of Directors, after consultation with our advisors, and in accordance with our merger agreement with MPI, has determined that Hospira's proposal is a…
GaBI Online characterized the merger as a portfolio-fit acquisition leveraging Hospira's existing anesthesiologist call points for Precedex and noted…
Hospira announces successful completion of tender offer for shares of Javelin Pharmaceuticals; all validly tendered shares accepted for payment, with a…
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Hospira to acquire Javelin Pharmaceuticals for ~$145M, adding Dyloject IV pain product. Tender offer completed July 1, 2010.
A $145M bet on a near-term pain-drug approval turned into a 4.5-year regulatory ordeal — Dyloject launched just as Hospira itself was swallowed by Pfizer, then was quietly discontinued
Assessment window: 15yr post-close.
51.4M US cases/yr
Acute post-operative pain affects nearly every surgical patient and is traditionally managed with IV opioids such as morphine, fentanyl, and hydromorphone. Opioid-related adverse events — respiratory depression, nausea, ileus, and sedation — extend length of stay and drive interest in non-opioid IV adjuncts that reduce opioid burden.
Hospira's 2010 acquisition of Javelin slotted Dyloject (diclofenac sodium IV) into a US hospital pain market dominated by IV opioids and a small set of non-opioid IV agents: Cumberland's Caldolor (IV ibuprofen, FDA-approved 2009) and IV acetaminophen (Cadence's Ofirmev, approved late 2010). Dyloject's pitch was a fast-acting IV NSAID using a hydroxypropyl-beta-cyclodextrin solubilization platform, designed for low-volume bolus dosing with an opioid-sparing label claim. At deal time Dyloject was awaiting FDA approval — and a CRL ultimately delayed US approval until December 2014, four years post-deal, an outcome that significantly diminished Hospira's ROI on the $145M acquisition. Strategically, Dyloject was positioned to leverage Hospira's existing acute-care sales infrastructure already calling on anesthesiologists for Precedex (dexmedetomidine), making the cross-sell logic clean even if execution stalled on regulatory timing. Hospira retained global rights ex-Europe, where rights remained with Therabel. The deal is widely viewed as strategically sound but financially compromised by the CRL — Pfizer ultimately inherited Dyloject when it acquired Hospira in 2015. Source: https://www.gabionline.net/pharma-news/Generics-manufacturer-Hospira-merges-with-Javelin
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Hospira Inc. / Javelin Pharmaceuticals, Inc. (this deal) | 2010 | $145M | 25 |
| Hospira Inc. / Abbott Hospital Products Division | 2004 | — | 54 |
| Hospira Inc. / Orchid Chemicals & Pharmaceuticals (Generic Injectables Business) | 2010 | $400M | 23 |
| Hospira Inc. / Orchid Chemicals & Pharmaceuticals Ltd. (API and R&D facilities) | 2012 | $200M | 22 |
| Hospira Inc. / Orchid Chemicals & Pharmaceuticals Ltd. (Generic Injectables business) | 2009 | $400M | 22 |
| Watson Pharmaceuticals (Actavis Inc.) / Actavis plc | 2012 | $5.9B | 97 |
| Kohlberg Kravis Roberts & Co. / PRA International (Genstar Capital) | 2013 | $1.3B | 91 |
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